Real estate market in Portugal in 2019

Real estate market in Portugal in 2019

I think that the question of the state of the property market in Portugal and Lisbon or Porto in 2019 is on many lips and will be even more so by the end of the year. It is very difficult to find accurate, reliable and complete information without calling on a professional in Portugal who could give you a detailed answer but it would take a long time.

You will find below different information gathered around the real estate market in Portugal in 2019. This dossier concerns the country in general but with a lot of information about the two biggest cities: Lisbon and Porto.

For your information, I have been living in the Lisbon area for several years. I have met many independent real estate agents, English-speaking or not, who I trust and who will be able to assist you in your real estate purchase in Lisbon, its region or elsewhere in Portugal. If you have a real estate project in the country and you wish to be accompanied in the research, visits, administrations, steps and the whole buying process, fill in the contact form by clicking on the button below and I will put you in touch with the right people.


Portugal’s property market in 2019: key figures

You will find below a set of figures or information that can give you an idea of the state of the real estate market in Portugal in 2019 and its evolution compared to 2018:

  • 2018 was the best year for real estate in Portugal but experts predict a stabilization and then a decline in 2019.
  • At the end of 2018, house prices in Portugal increased by 6.6% on average.
  • In 2019, many property owners are prepared to lower the price of their property by 10% in the face of the longer time it takes to sell.
  • On the residential property market: the number of homes sold in Portugal in 2018 increased by 19% with property prices up by 10% in Portugal and 20% in Lisbon
  • The cities of Lisbon, Porto and Cascais are witnessing strong growth in upmarket real estate.
  • On the Lisbon property market, prices are around 10,500 euros/m2 on Avenida da Liberdade and 5,000 euros/m2 in the Parc des Nações.
  • Brazilians (25%), the British (13%) and the French (11%) stand out in terms of the volume of property purchases in Lisbon, Porto and Cascais.
  • In 2018, Portugal records a +23% increase in applications for home loans
  • Real estate investments with a strong focus on offices in Lisbon: 410,000 m2 of office space planned by 2022 (strong presence in Parque das Nações) and 78,000 m2 of new office space by the end of 2019.
  • 80% increase in the supply of student accommodation in Lisbon from September 2019
  • 2019 will tend towards massive investments in construction from 0, while investment for renovation in Portugal reached 2 billion euros in 2018.
  • In 2018, office rentals in Greater Lisbon recorded annual growth of around 24% for 200,000m² of leased office space.
  • Porto also had its best real estate year ever in 2018.
  • In 2018, the average property price in Porto is 1800€/m², an increase of 22% compared to 2017.
  • The prices of top-of-the-range real estate in Port are 6,000€/m² (historic centre), 5,500€/m² (Ribeira) and 4,500€/m² (Foz).

historic centre of Porto

Decline in property prices in 2019

Real estate in Portugal reached record highs in 2018 and both Portuguese and foreigners had to get their hands on the portfolio to make real estate purchases in the country. The various real estate experts questioned on the subject predict that prices will continue their momentum but above all stabilize and then fall.

This is mainly due to the reduction in the number of renovation projects, but also and above all to the increase in construction projects starting from zero in new areas, which will breathe new life into the market and satisfy demand a little more. It should be noted, however, that the experts assure that these new projects, however numerous they may be, will not be sufficient to meet demand.

After the repeated “best years” and the euphoria of recent months (already in the final straight of last year, house prices in Portugal rose by 6.6%), the sector’s voices anticipate stability.

Ricardo Sousa (CEO of Century 21) acknowledges the “speculative and almost irrational prices” but adds, however, that the vast majority of owners are now “ready to reduce the value of properties by up to 10%” because the time taken to sell properties in Portugal has increased.

The number of houses sold in Portugal increased by 19% and prices exceeded 10% in the country and 20% in Lisbon. The offer is now more dynamic and diversified.

The National Institute of Statistics (INE) reports housing sales up by around 19% compared to 2017. Prices have followed the sales dynamic and reflect the lack of supply of real estate in Portugal, with a 12% growth in the 2nd quarter.

In Lisbon, the upmarket property market shows the following prices :

  • 10,500 euros/m2 on Avenida da Liberdade
  • 5,000 euros/m2 in the Parc des Nações

More than 40 nationalities have made a property purchase in Lisbon, Porto and Cascais, with Brazilians, English and French in the lead.

Avenida Liberdade lisbon

Improved economic conditions in Portugal have led the Portuguese to buy more homes and make more home loans (+23% compared to 2017).

Porto’s real estate market

Porto's real estate market 2019

2018 was the best year ever recorded for real estate in Porto. The forecasts for 2019 are very good in the residential market where the supply of new housing is more important, tourist with the opening of new hotels and offices.

The city of Porto is recording a strong increase in the number of real estate projects (Baixa, Foz, Marechal Gomes da Costa and Paranhos…). There will be renovation projects as well as construction projects, which will fuel the new real estate market and perhaps bring prices down.

According to the Residential Information System (SIR), in the second quarter of 2018, the average price of houses sold (new and second-hand) was 1,800 euros per square metre (m2) in the city of Porto, showing an increase of 22% compared to the same period last year.

In exclusive developments, the prices charged are much higher, in the order of 6,000 euros per m2 in the historic centre, 5,500 euros per m2 in the Ribeira area and 4,500 euros per m2 in Foz.

The north of Portugal is experiencing very strong growth in the office property market, both in Porto and in the neighbouring towns of Matosinhos, Maia and Gaia. Many companies are setting up there in the technology sector (More information on setting up a business in Portugal). In September 2018, 70,000 m² of office space was occupied in the Porto region, the forecast is for more than 100,000 m² in 2019.

The Avenida dos Aliados in Porto is going to be renovated and will thus become the heart of the city. This area will be able to accommodate several new homes, new hotels and new shops. We can already mention Aliados 107, the Monumental Albar House or the Pestana Porto which are already in place. Several luxury brands are already in negotiations to set up their shops there.

Other real estate projects will come to impact the dynamics of the city of Porto in 2019: the installation of the hotel chain Eurostares and the transformation of the Palácio dos Correios into offices and shops. Two projects that will make the city of Porto even more attractive and in demand.

Real estate project in Lisbon

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